MANILA (Dow Jones)--World coconut oil prices fell sharply this week onimproved copra supply and the bearish influence of the soy and palm oilmarkets.Manila-based traders quoted coconut oil for August/September deliveryat $615-$620 a metric ton, CIF Rotterdam, while September/October deliverywas offered at $605/ton. These prices are lower by $40 to $50/ton fromprices quoted a week ago."Farmers are now coming out with their copra, and reports of copraturnover have caused export prices to fall," one trader said.The peak harvest period for copra starts in the third quarter.Traders said bearish sentiment in the soyoil market, courtesy of agood soybean crop in the U.S. and robust palm oil supply in Malaysia,added to the pressure on coconut oil prices.The downward trend in coconut oil prices may continue next weekalthough the downside will be limited by an overall decline in coprasupply this year, another trader said.Copra production is projected to reach 2.4 million tons this year,down from last year's 2.5 million tons. The projected decline in output isattributed to biological stress of coconut trees following several yearsof bountiful harvests.The country's coconut oil exports in July are expected to reach 62,700metric tons, up 30% from June on an improvement in the supply of copra.The Philippines is the world's biggest exporter of coconut oil,averaging 1 million tons a year.